HomeMy WebLinkAboutFinance October 26 1998I WHATCOM COUNTY COUNCIL
2 Finance and Administrative Services Committee
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4 PROPOSED 1999 WHATCOM COUNTY BUDGET
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6 October 26, 1998
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8 The meeting was called to order at 1:30 p.m. by Committee Chair Marlene Dawson in the
9 Council Committee, 311 Grand Avenue, Bellingham, Washington
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11 Also Present: Absent:
12 Connie Hoag None
13 L. Ward Nelson
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15 DISCUSSION OF THE COUNTY EXECUTIVE'S 1999 RECOMMENDED BUDGET
16 (TREASURER, EXECUTIVE, ADMINISTRATIVE SERVICES, COUNCIL/HEARING
17 EXAMINER)
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19 Wareing explained the various reports that the Committee would be going through.
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21 TREASURER
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23 Wareing went through the additional service requests for the Treasurer, including the
24 addition of a .5 FTE to replace lost employee processing time. All requests were approved as
25 submitted. The Revenue Deputy Sales Tax position pays for itself, due to the errors, which are
26 caught by the audits of sales tax receipts. He introduced Barbara Cory, Whatcom County
27 Treasurer.
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29 Barbara Cory, Treasurer addressed the Additional Services Requests. They have had
30 large employee replacements due to a large number of retirements in the office. If the addition
31 of a .5 FTE employee position is approved, then it will allow for more cashiers and cash out
32 time. She has negotiated with the title companies to work around the cash out time. The title
33 companies have felt that they have not been treated equally as the public. If the .5 FTE is
34 approved, it will eliminate the title company issue. There is also a need for additional re-
35 classifications of two positions.
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37 Nelson questioned the costs for the reclassification. Wareing explained that all re-
38 classifications have been addressed in the Human Resources office.
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40 Cory explained that if the .5 FTE was not approved, then she would not want the re-
41 classification.
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43 (Clerk's Note: Hoag arrived.)
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45 Cory stated that title companies are currently limited to certain hours that they can bring
Finance Committee — Budget, 10/26/98, Page 1
I in their documentation. If they want to bring in documents later than their specified time, then
2 they have to put in a special request. They don't like to do this.
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4 Dawson asked if other counties worked this way with the title companies. Cory
5 explained that it has a negative impact to the Treasurer's position, and that no other counties are
6 using this system.
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Wareing explained that some of the additional service requests have an impact on County
fees.
Cory explained the certified cash managers fees, and travel and education for maintaining
their certification.
Dawson questioned the Bloomberg market information. Cory introduced Karen Thomas,
Cash Management Administrator.
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17 Thomas explained the Bloomberg market information, which is the County investment
18 software. In past years, they have relied on investment brokers and third parties to provide risk
19 management information and information on buys and trades for the County's portfolio. The
20 County is not covering all the bases when it comes to managing risk and exposures and relying
21 on third parties, especially since these brokers want to sell to the County. The software is
22 essential to aid in the risk management of the portfolio.
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24 Dawson questioned whether this is a one time cost. Thomas explained that the software
25 is leased.
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27 Wareing stated that this is on a trail basis.
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29 Thomas explained that this is the best security for the County's portfolio.
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31 Cory explained the need to purchase securities in this manner.
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33 Hoag asked about the operating hours. Cory explained the office hours might be changed
34 from 8:00 a.m. to 5:00 p.m. The office needs some processing time to balance and maintain the
35 books and they need additional staff to comply with the additional open hours.
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37 Wareing stated that the standardization of County operating hours would have a financial
38 impact and the administration did not recommend it for this year.
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40 Hoag explained that her concerns regarding additional hours were in regards to closing
41 for lunchtime, half days, and other short days.
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43 Brenner stated that she would like to see all County operating hours consistent for all the
44 departments. She doesn't want to inconvenience anyone, and complimented Cory on her
45 efficiency. She questioned whether this would be a major inconvenience if the hours were
Finance Committee — Budget, 10/26/98, Page 2
I changed. Cory stated that she would need additional staffing to accomplish this.
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3 Discussion followed regarding the Deputy -Sales Tax position.
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5 Nelson asked what is done with the revenues as soon as they come in. Cory explained
6 that these revenues are invested immediately.
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8 Nelson questioned where the interest on the investments identified from the revenues that
9 are generated. Cory explained that it is on going. They invest all of the cash that is not being
10 invested by the districts. If they don't invest their own cash, the County is allowed by State law
11 to invest it to the benefit of the County Current Expense Fund. That is what they are referring to
12 as residual cash.
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14 Nelson questioned the total tax credit intake is compared to year -to -date. Cory stated that
15 they increase each year due to new construction. That gives the County more revenue to work
16 with and invest. It all depends on how soon it is paid and how soon the County can get it
17 invested. The last few years, interest earnings have increased substantially from what they
18 estimated.
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20 Nelson questioned how many outstanding bonds there are. Cory stated that there are
21 only the Courthouse bonds, and they are in a 20 -year redemption schedule. There are still 15
22 years to go.
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24 Nelson asked about cashing out the bond and refinancing. Cory explained that they are
25 always watching to refund the bonds. There may be an opportunity soon. Her policy is that
26 there must be a 5% savings in order to justify the cost of going through a refunding bond. Last
27 time she checked, the saving was at 4.33 %.
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29 Cory explained the Treasury workstation software modules. She explained the request
30 for software to better manage the portfolio. Currently the workload is managed on three
31 different systems. There are only two employees who know how the systems work. This new
32 software would have one system that manages the portfolio, a manual, and an outside vendor to
33 help maintain the system. The current system does not interface with the JD Edwards system.
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35 Hoag questioned what type of investing the County does. Cory explained that what they
36 can invest in is specifically identified in the State statute. Most of the investments are in federal
37 agency securities. They are not allowed to invest in the stock market. They are allowed to
38 invest in low risk investments.
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40 Brenner asked if she could find the actual revenue for 1998 and the actual expenditures
41 for 1998. Wareing explained that can be found in the 1999 budget system reports.
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43 EXECUTIVE
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45 Wareing addressed the Executive's budget. There are no additional service requests for
Finance Committee — Budget, 10/26/98, Page 3
I the Executive.
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3 Hoag questioned what Non - Departmental is. Wareing stated that Non - Departmental
4 items are those that are generally contract issues and financial operations that are administered
5 by the Executive and overseen by that department. For example, they are services such as Medic
6 One that are contracted for with other entities. Those are dealt with later in the budget process.
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8 Hoag asked about the Water Coordinator and under whose budget the Water Coordinator
9 position would fall. Wareing explained this has not been decided yet.
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11 Hoag questioned what Administrative Services is. Wareing explained that the Executive
12 office is separate from Administrative Services, and the Department runs the internal services.
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14 Brenner asked when the Council and the Executive will be meeting. Wareing explained
15 that Kremen and the Clerk of the Council are working together to set this meeting up.
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17 ADMINISTRATIVE SERVICES — FACILITIES MANAGEMENT
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19 Wareing reported for Administrative Services. There are additional service requests for
20 an alarm notification enhancement system. This will enhance the notification through a pager
21 system if there is a failure in the system, which have occurred when the building was
22 unoccupied. This system would alert the person on -call that the building needs a response.
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24 Hoag questioned what happens now if an alarm goes off. Wareing explained that the
25 alarms are monitored for fire and other emergency alarms. Otherwise, they go unnoticed until
26 Monday.
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28 Harry Skinner, Facilities Management Manager, explained that this system would allow
29 all alarms to be monitored 24 hours a day. He then explained the updating of the carpet in the
30 coffee shop. The carpet color is hard to maintain.
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32 (Clerks Note: End of tape one, side A)
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34 Brenner asked why they have carpeting were things are spilled. She suggested vinyl,
35 which cleans up better. Skinner suggested that they are open to suggestions.
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37 Hoag explained that vinyl would be slippery when things are spilled. Also, the carpeting
38 deadens the sound. The courthouse has the equipment to clean this carpet.
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40 Hoag asked about the bonds, and if the actual cost would be $60 million after it is all
41 paid.
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43 Brad Bennett, Administrative Services Finance Manager, explained that it works
44 somewhat like a mortgage.
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Finance Committee — Budget, 10/26/98, Page 4
I Hoag suggested that some money be set aside to pay this money off so the bonds are paid
2 off earlier. Bennett explained that the community grows and more people share the cost.
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4 Hoag expressed concerns, and suggested a second look be taken to set aside additional
5 funding for paying off the bonds.
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7 Wareing explained the needs for the courthouse weapons screening. This would allow
8 the employees a safer working environment. The equipment would provide walk- through
9 archways and a scanning system. A number of incidents have occurred in the courthouse where
10 people bring in weapons and threaten people. He also explained the chimney effect at the south
11 end entrance of the building due to high winds. Changing the entrance for the scanning system
12 would also effect this.
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14 Dawson suggested that just one screening facility be placed at the elevator entrance.
15 Wareing stated that this would only protect the courts, and leave the rest of the building
16 vulnerable.
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18 Brenner stated that the need is mostly for the court system. She questioned why the
19 doors are not locked any longer. Wareing explained that locking the door was not valuable
20 because anyone could get off the elevator and use the stairwell.
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22 Skinner explained that Whatcom County is the only county on the I -5 corridor that does
23 not have security scanners.
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25 Hoag asked exactly what the $150,000 buys. Skinner explained that it is for
26 scanners /conveyors and changing the entryway.
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28 Hoag brought up concerns regarding the use of just metal detectors. She asked how this
29 would effect a Council meeting. Wareing explained that after hours meeting would or would not
30 be screened. The hours could be chosen.
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32 Nelson asked how many incidents were documented. Wareing stated that perhaps a
33 couple of dozen.
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35 Nelson asked how many incidents were someone actually bringing in weapons. Wareing
36 stated that he would have to get the actual figures.
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38 Wareing stated that another request was for double -pane glass windows in the Auditor's
39 offices.
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41 Skinner reported that the Auditor's office has only single pane windows. The employees
42 sitting by those windows lose body heat due to the cold, which come in through the windows.
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44 Brenner questioned whether the special blinds would solve the heat loss situation.
45 Skinner explained that this would be a good idea, but would be very expensive.
Finance Committee — Budget, 10/26/98, Page 5
Wareing stated that another request was for emergency gas supply shutoff valves.
Skinner explained that the shut off would occur during an earthquake and other
emergencies.
Wareing stated that another request is for Jail fire sprinkler controls. This has been an
issue for quite some time and these controls need to be rebuilt because the wiring is not very
good.
Skinner explained that these controls are 18 years old and the new system is electronic
and is a touch system. The current system is almost worn out.
Wareing stated that another request is for Jail light fixtures. The light fixtures are costing
a lot of energy.
Hoag asked what the cost saving would be. Skinner stated there is possibly a 2.8%
yearly saving.
Wareing stated that the next request was for the Northwest Annex basement heating
system.
Skinner explained that the basement was never finished, and this would finish the
building.
Nelson asked how long the life of the building is. Wareing explained that the building is
not expected to be retired any time soon. They will propose in the Capital Facilities planning
that a new building be built that works with the current building. The building is too value to
destroy.
Hoag asked about the fresh air in the building. The complaints were in 1997. Skinner
stated that they have completely renovated the fresh air intakes. They were undersized. They
are now controlled on a computer system.
Wareing stated that the next request is for a proximity sensor door lock system. This
would be the use of identification badges for employees that would be used for different
purposes. It helps with security access.
Hoag asked what the $40,000 buys. Wareing explained that this is a computerized
system that is controlled and monitored. Also, the system could monitor the levels of employees
coming in the building.
(Clerk's Note: End of tape one, side B.)
Wareing stated that the County has been lucky and hasn't had many problems with theft
Finance Committee — Budget, 10/26/98, Page 6
I or other such problems. They want to keep it that way.
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3 Wareing stated that the next request is for the purchase of five creek side lots by the
4 Civic Center building. They recommend that be postponed. The corrections to the Civic Center
5 building are because it needs to be reinforced structurally. The last request includes utility cost
6 monitoring and control system software.
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8 Skinner stated that they have been lacking the knowledge of what each system costs per
9 hour to hour and whether they need to be adjusted.
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11 ADMINISTRATIVE SERVICES - FINANCE
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13 Wareing stated that there was nothing to discuss in Finance. The two issues have been
14 addressed through the technology revolve and rental (TR &R) fund money.
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16 ADMINISTRATIVE SERVICES - HUMAN RESOURCES
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18 Wareing explained the compensation survey for the local area.
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20 Dawson questioned whether the compensation survey is comparing the public sector.
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22 Karen Goens, Administrative Services Human Resources Manager, explained that
23 Human Resources have not been able to compile the data for local compensation. Retention and
24 recruitment problems in the County have begun to occur.
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26 Brenner stated that she did not support comparing the public sector to the private sector.
27 Also, this is too much money to spend on this project.
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29 Hoag stated she wanted to look at the total package including benefits, however spending
30 $25,000 to compile the data is not necessary. The current staff should be doing the study.
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32 ADMINISTRATIVE SERVICES -INFORMATION SERVICES
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34 Wareing stated that the microfilm position was not approved. They have another
35 proposal to deal with that. The increased .5 FTE help desk position was approved. They also
36 need to continue the funding for the PC/LAN Tech I position for one more year. He continued to
37 go through the additional services request.
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39 George Reid, Administrative Services Information Services Manager, stated that the
40 current voice mail system is not Year 2000 (Y2K) compliant. 1992 was the last time the voice
41 mail was upgraded.
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43 Nelson questioned what else needs to be done to be Y2K compliant. Reid explained that
44 all computer systems and related software have been checked.
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Finance Committee — Budget, 10/26/98, Page 7
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Wareing stated that they are checking the embedded chips in equipment such as copy
machines.
Reid and Wareing explained what an embedded chip is.
ADMINISTRATIVE SERVICES - NON - DEPARTMENTAL
Wareing discussed non - departmental items including employee retirement, leave pay -out,
and retirement cash -out.
11 Hoag asked why the employee retirement amount is so high. Wareing responded that the
12 person retiring has been with the County for a long time and accumulated a lot of vacation and
13 sick time for which they must be paid.
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15 Reid reported on what else needs to be completed in the American with Disabilities Act
16 (ADA) transition plan. This will include the County -owned senior centers.
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18 Wareing stated that they will continue funding for computer training, a programmer for
19 the AS400 system, domestic violence issues, and the County -wide imaging system.
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21 Brenner asked why the County continually has one time funding for the imaging system
22 and what happens when it becomes outdated. Wareing explained that the imaging system would
23 already be in place and it is the current technology.
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25 Brenner suggested leasing the equipment. Wareing stated that leasing would cost the
26 County more money. This equipment should last many years into the future.
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28 Hoag questioned whether this was for all the County departments or just a portion. Reid
29 responded that it was only for some of the departments, but they weren't sure yet which ones. It
30 depends on each department's volume of work.
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32 Nelson questioned whether this equipment goes into the Technology Revolve and Rental
33 (TR &R) fund. Wareing stated that it isn't in that fund, but it could go there.
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35 Wareing stated that the Countywide microfilm item is to hire five people for one year and
36 purchase four machines to get as much of the microfilming done as possible in one year.
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38 Hoag questioned how these people would be hired for one year. Wareing explained that
39 the people would be hired as full -time, one -year FTE.
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41 Hoag questioned whether the regular staff in the future would need four machines.
42 Wareing stated that the County now has three machines. Two of the machines that are used right
43 now are obsolete.
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45 (Clerk's Note: End of tape two, side A)
Finance Committee — Budget, 10/26/98, Page 8
Hoag expressed concerns about having four machines.
Ann Bjertness, Administrative Services Records Management Manager, stated that the
cost for leasing one machine is $19,000, and the cost for purchasing one machine is $16,000.
There will always be a need for these machines.
Hoag asked why is a lease so high. Bjertness stated that is the market cost of leasing.
Wareing stated that the last item is the wide -area network. In 1999, the LAN system and
the network should be complete.
COUNTY COUNCIL /HEARING EXAMINER
Dana Brown- Davis, Clerk of the Council, stated that the budget has been cut by $24,000
compared to last year. The additional cut was because they will no longer need Sandy Mackie's
professional services. There is $10,000 in the professional services budget.
Nelson questioned whether there was money if Council meetings were taken to other
parts of the County. Brown -Davis explained there is a $5,000 miscellaneous account.
Hoag asked if the Council is the only department that cut its budget. Wareing stated that
some other departments also cut their budgets.
Hoag asked for a list of which departments made cuts. Wareing explained that each
department submitted budgets that included both a 3% and 5% decrease. The budget has been
trimmed as much as possible without cutting service and personnel.
Wareing suggested the use of mobile phones for the Council, to stay in contact with the
public.
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The meeting was adjourned at 4:10 p.m.
Jill Nixon, Minutes Transcription
ATTEST: WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Dana Brown - Davis, Council Clerk Marlene Dawson, Committee Chair
Finance Committee — Budget, 10/26/98, Page 9